Patrick McHugh Vice President Con Edison
Agenda BQDM overview Utility-sided storage project Customer-sided storage project Marcus Garvey Clean virtual power plant Storage demonstration portfolio DR Auction 2
BROOKLYN QUEENS DEMAND MANAGEMENT ( BQDM ) Deferral of ~$1 billion in traditional solutions BQDM Program BQDM Geography Strong peak growth in 3 networks in Brooklyn-Queens would require ~$1 billion in capital upgrades. Instead, Con Edison is planning to use $200 million incentive program to defer upgrade. Customer-sited (41 MW, $150 million) Utility-sited (11 MW, $50 million) Utility expenditures treated as 10- year capital assets with regulated return, with performance incentive on ROE. 3 3
Addressing the BQDM Overload Portfolio Approach Innovative Approaches 41 MW Customer Sided (Demand-side Portfolio incl. Storage) New Substation Deferred to 2026 or later Traditional Utility Sided (Load Transfers, Transformers, Capacitor Banks) 11 MW Alternate Utility Sided (Storage and others) Demand-side Resources Portfolio of solutions Reliable and Innovative Addressing the system need Learning along the way Storage has a critical role Batteries provide peak relief Exporting batteries permitted pending regulatory authorization 4
BQDM 2018 CSS AND USS SOLUTIONS PORTFOLIO Summer 2018 Outlook ACRONYMS DR Demand Response CHP Combined Heat and Power DMP Demand Management Program CVO Conservation Voltage Optimization C&I Commercial and Industrial Load Relief (MW) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0-10.0 Thermostat Anticipated Thermal Storage Anticipated Battery Storage Anticipated CHP Anticipated Utility Solar Anticipated Solar Anticipated Utility Fuel Cell Anticipated Fuel Cell Anticipated Energy Efficiency Anticipated DMP Committed CVO Committed Utility Storage Committed Battery Storage Committed DR Committed CHP Committed Solar Committed Fuel Cell Committed Energy Efficiency Committed Target (High Case) Committed (Low Case) Hour Ending (Design Peak Day) TOTAL 2018 NEED 5
Utility-Sided Storage Project Company owned DESS will account for 2 MW of BQDM Storage system will be 12 MWhr @ 2 MW demand Eight battery containers and one power converter container 6
Utility-Sided Storage Project Storage technology Modular array of 2,240 LiFePO 4 batteries in 8 x 40 trailer Eight strings for 1.5 MWh per container (280 batteries at 40,000 lbs) Off peak charging for peak shaving use 7
Utility-Sided Storage Project: Site Selection Installation location Logical solution is to utilize Con Ed property Need available land in BQDM area Must have sufficient room to accommodate battery system Our research led us to two Con Ed locations Con Ed property Con Ed Property Site A Site B 8
Utility-Sided Storage Project: Site Selection Site A benefits 4 kv substation already on site Allows closest connection to 4 kv system, virtually on 4 kv bus Compact, but doable Excavation on Con Ed property, only Con Ed property Site A (not to scale) 9
Utility-Sided Storage Project: Site Selection Site A Challenges Con Ed standards require FEMA + 3 Land is in a residential (R4) zone 10 height restriction on non-dwelling buildings Neighboring buildings are all residential dwellings Deed restriction Land sold to Con Ed for utility substation, only Any other use requires special permits FDNY approval of fire suppression system required Con Ed property Site A (not to scale) 10
Utility-Sided Storage Project: Site Selection Site B Larger space than Site A and in BQDM area No deed restrictions Not in FEMA flood zone In a manufacturing zone (M1-1) Allows space for future energy storage projects Minimum conductor reinforcement required Con Ed Property Site B (not to scale) 11
Customer-Sided Storage Project- Marcus Garvey The Company's Brooklyn-Queens Demand Management (BQDM) has entered into a contractual agreement with Marcus Garvey Apartments in Brooklyn to provide demand reduction using multiple DERs consisting of: 300 kw/1200 kwh Battery Storage (Lithium-ion) 400 kw Fuel cell 390 kw Solar Anticipated completion date for this project is April 1, 2017 12
Clean Virtual Power Plant SunPower/SunVerge Product Overview Integrated solution PV panels on the roof Outdoor UL-certified storage system 13
Storage Demonstration Portfolio Project Partners Increases market potential by simplifying customer experience and aligning storage benefits to grid needs Maximizes value of 10 year asset through mobility option 14
BQDM DR Auction 15